Global Wealth Management & Business Banking

New organizational structure

As announced on10 February 2009, Global Wealth Management & Business Banking split into two divisions: Wealth Management & Swiss Bank and Wealth Management Americas. UBS`s financial reports will reflect this new structure from first quarter 2009 onwards.

Wealth Management & Swiss Bank: UBS’s wealth management business caters to high net worth and affluent individuals around the world (except those served by Wealth Management Americas) whether they are investing internationally or in their home country. UBS offers these clients a complete range of tailored advice and investment services. Its Swiss Bank business provides a complete set of banking services for Swiss individual and corporate clients.

Wealth Management Americas: Wealth Management Americas offers sophisticated products and services specifically designed to address the needs of high net worth and affluent individuals. It includes Wealth Management US, domestic Canada, domestic Brazil and the international business booked in the United States.

Performance in 2008

Global Wealth Management & Business Banking recorded a pre-tax profit of CHF 5,352 million, compared with CHF 9,251 million in 2007.

Wealth Management International & Switzerland recorded a pre-tax profit of CHF 3,601 million, compared with CHF 6,310 million in 2007. This is partially due to a provision of CHF 917 million in connection with the US crossborder case. During this period: net new money outflows were CHF 101.0 billion compared with inflows of CHF 125.1 billion; invested assets declined 33% to CHF 870 billion; and the cost / income ratio increased to 63.1% from 51.1%.

Wealth Management US recorded a pre-tax loss of CHF 698 million in 2008, compared with a pre-tax profit of CHF 674 million in 2007. A negative impact of CHF 1,524 million from auction rate securities-related charges and trading losses drove this decline. During this period net new money outflows were CHF 10.6 billion compared with inflows of CHF 26.6 billion, and invested assets declined 29%.

Business Banking Switzerland recorded a record pre-tax profit of CHF 2,449 million in 2008, compared with CHF 2,267 million in 2007. The change resulted from a strong decrease in operating expenses during this period. During this period, the cost / income ratio improved to 51.2% from 57.7%.

Business division / business unit reporting